First Quarter Results
Reported net sales increased 2.6% to $6.0 billion
Organic net sales increased 2.4%
Reported operating income margin of 15.5%
Adjusted operating income margin(1) contracted 180 bps to 21.1%
Reported EPS increased 14.2% to $1.93
Adjusted EPS(1) decreased 8.5% to $2.60
First Quarter Net Sales Growth Overview
Reported
Foreign Currency Exchange
Constant Currency
Acquisitions / Divestitures
Organic
MedSurg and Neurotechnology
5.0
%
1.4
%
3.6
%
2.7
%
0.9
%
Orthopaedics
0.1
1.9
(1.8)
(5.9)
4.1
Total
2.6
%
1.6
%
1.0
%
(1.4) %
2.4
%
"I am pleased with our team's ability to recover quickly from the cyber incident and continue delivering for our customers and their patients," said Kevin A. Lobo, Chair and CEO. "We remain committed to meeting our full year guidance for organic sales growth and adjusted earnings per share as our underlying business momentum remains strong."
In the first quarter 2026 Stryker announced a change in our organizational structure. Our new Ortho Tech business combines the orthopaedic instruments portfolio from our Instruments business with the Mako and enabling technologies portfolio from our Other Orthopaedics business. By bringing Mako, power tools, cutting accessories, enabling technologies and the teams behind these products together under one business, we are simplifying the customer experience and striving to increase our speed to market through focused innovation. Prior period segment information has been recast to reflect these changes and they will have no impact on our consolidated financial statements. On our Investor Relations website at investors.stryker.com, we have provided additional information on our segment quarterly revenues for 2023, 2024 and 2025 that reflects the change in our organizational structure and other changes as if they had been effective for the periods presented.
Sales Analysis
Consolidated net sales of $6.0 billion increased 2.6% in the quarter and 1.0% in constant currency. Organic net sales increased 2.4% in the quarter including 2.1% from increased unit volume and 0.3% from higher prices.
MedSurg and Neurotechnology net sales of $3.2 billion increased 5.0% in the quarter and 3.6% in constant currency. Organic net sales increased 0.9% in the quarter including 0.3% from increased unit volume and 0.6% from higher prices.
Orthopaedics net sales of $2.8 billion increased 0.1% in the quarter and decreased 1.8% in constant currency. Organic net sales increased 4.1% in the quarter from increased unit volume.
Earnings Analysis
Reported net earnings of $745 million increased 13.9% in the quarter. Reported net earnings per diluted share of $1.93 increased 14.2% in the quarter. Reported gross profit margin and reported operating income margin were 63.3% and 15.5% in the quarter. Reported net earnings include certain items, such as charges for acquisition and integration-related activities, the amortization of purchased intangible assets, structural optimization and other special charges, goodwill and other impairments, costs to comply with certain medical device regulations, recall-related matters, regulatory and legal matters and tax matters. Excluding the aforementioned items, adjusted gross profit margin(1) was 63.6% in the quarter, and adjusted operating income margin(1) was 21.1% in the quarter. Adjusted net earnings(1) of $1.0 billion decreased 8.5% in the quarter. Adjusted net earnings per diluted share(1) of $2.60 decreased 8.5% in the quarter.
2026 Outlook
We are maintaining our full year 2026 guidance of organic net sales growth(2) in the range of 8.0% to 9.5% and adjusted net earnings per diluted share(2) in the range of $14.90 to $15.10. Our sales guidance includes a modestly positive pricing impact. Additionally, foreign exchange is expected to have a slightly favorable impact on both sales and adjusted net earnings per diluted share(2) should rates hold near current levels.
(1) A reconciliation of the non-GAAP financial measures: adjusted gross profit margin, adjusted operating income and adjusted operating income margin, adjusted net earnings and adjusted net earnings per diluted share, to the most directly comparable GAAP measures: gross profit margin, operating income and operating income margin, net earnings and net earnings per diluted share, and other important information accompanies this press release.
(2) We are unable to present a quantitative reconciliation of our expected net sales growth to expected organic net sales growth as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of acquisitions and divestitures and the impact of foreign currency exchange rates. We are unable to present a quantitative reconciliation of our expected net earnings per diluted share to expected adjusted net earnings per diluted share as we are unable to predict with reasonable certainty and without unreasonable effort the impact and timing of structural optimization and other special charges, acquisition-related expenses and the outcome of certain regulatory, legal and tax matters. The financial impact of these items is uncertain and is dependent on various factors, including timing, and could be material to our Consolidated Statements of Earnings.
Conference Call on Thursday, April 30, 2026
As previously announced, we will host a conference call on Thursday, April 30, 2026 at 4:30 p.m., Eastern Time, to discuss our operating results for the quarter ended March 31, 2026 and provide an operational update.
Please register for this conference call at: https://stryker-1q2026-earnings.open-exchange.net. After registering, a confirmation will be sent via email, including dial-in details and unique conference call access codes required for call entry. Registration is open throughout the live call. To ensure you are connected prior to the beginning of the call, we suggest registering a minimum of 15 minutes before the start of the call.
A simultaneous webcast of the call will be accessible via the Investor Relations page of our website at www.stryker.com. For those not planning to ask a question of management, we recommend listening via the webcast. Please allow 15 minutes to register, download and install any necessary software.
Following the conference call, a replay will be available on our website up to one year from the time of the earnings call.
Caution Concerning Forward-Looking Statements
This press release contains information that includes or is based on forward-looking statements within the meaning of the federal securities law that are subject to various risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in such statements. Such risks and uncertainties include, but are not limited to: weakening of economic conditions, or the anticipation thereof, that could adversely affect the level of demand for our or Inari's products; geopolitical risks, including from tariffs and the potential for further changes in trade policies and international conflicts, which have led to and could continue to lead to, among other things, increased market volatility; pricing pressures generally, including cost-containment measures that have adversely affected and could in the future adversely affect the price of or demand for our or Inari's products; changes in foreign currency exchange markets; legislative and regulatory actions; unanticipated issues arising in connection with clinical studies and otherwise that affect approval of new products, including Inari's products, by the United States Food and Drug Administration and foreign regulatory agencies; inflationary pressures; increased interest rates or interest rate volatility; supply chain disruptions; changes in labor markets; changes in coverage and reimbursement levels from third-party payors; changes in the competitive environment; breaches, failures or other disruptions of our or our vendors' or customers' information technology systems or products resulting from cyber-attack, data leakage, unauthorized access or theft, including the cybersecurity incident first reported on March 11, 2026; a significant increase in product liability claims; the ultimate total cost with respect to recall-related and other regulatory and quality matters; the impact of investigative and legal proceedings and compliance risks; resolution of tax audits; changes in tax laws and regulations; the impact of legislation to reform the healthcare system in the United States or other countries; costs to comply with medical device regulations; changes in financial markets; changes in our credit ratings; our ability to integrate and realize the anticipated benefits of acquisitions in full or at all or within the expected timeframes, including our acquisition of Inari; our ability to realize any anticipated cost savings; risks relating to climate change or other environmental, social and governance and sustainability related matters; the impact on our operations and financial results of any public health emergency and any related policies and actions by governments or other third parties; unexpected liabilities, costs, charges or expenses in connection with the acquisition of Inari; and the effects of the Inari transaction on the parties' relationships with employees, customers, other business partners or governmental entities. Additional information concerning these and other factors is contained in our filings with the United States Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. We disclaim any intention or obligation to publicly update or revise any forward-looking statement to reflect any change in our expectations or in events, conditions or circumstances on which those expectations may be based, or that affect the likelihood that actual results will differ from those contained in the forward-looking statements, except to the extent required by law.
Stryker is a global leader in medical technologies and, together with our customers, we are driven to make healthcare better. We offer innovative products and services in MedSurg, Neurotechnology and Orthopaedics that help improve patient and healthcare outcomes. Alongside our customers around the world, we impact more than 150 million patients annually. More information is available at www.stryker.com.
For investor inquiries:
Jason Beach, Vice President, Finance and Investor Relations at 269-385-2600 or [email protected]
For media inquiries: Kim Montagnino, Vice President, Chief Communications Officer at 269-385-2600 or [email protected]
STRYKER CORPORATION
For the Three Months March 31
(Unaudited - Millions of Dollars, Except Per Share Amounts)
CONSOLIDATED STATEMENTS OF EARNINGS
Three Months
2026
2025
% Change
Net sales
$
6,020
$
5,866
2.6
%
Cost of sales
2,210
2,122
4.1
Gross profit
$
3,810
$
3,744
1.8
%
% of sales
63.3
%
63.8
%
Research, development and engineering expenses
413
405
2.0
Selling, general and administrative expenses
2,281
2,300
(0.8)
Amortization of intangible assets
180
167
7.8
Goodwill and other impairments
—
35
nm
Total operating expenses
$
2,874
$
2,907
(1.1) %
Operating income
$
936
$
837
11.8
%
% of sales
15.5
%
14.3
%
Other income (expense), net
(86)
(73)
17.8
%
Earnings before income taxes
$
850
$
764
11.3
%
Income taxes
105
110
(4.5)
Net earnings
$
745
$
654
13.9
%
Net earnings per share of common stock:
Basic
$
1.95
$
1.71
14.0
%
Diluted
$
1.93
$
1.69
14.2
%
Weighted-average shares outstanding (in millions):
Basic
382.9
381.7
Diluted
386.5
386.4
CONDENSED CONSOLIDATED BALANCE SHEETS
March 31
December 31
2026
2025
Assets
Cash and cash equivalents
$
2,878
$
4,011
Marketable securities
87
89
Accounts receivable, net
3,571
4,039
Inventories
5,419
5,310
Prepaid expenses and other current assets
1,383
1,306
Total current assets
$
13,338
$
14,755
Property, plant and equipment, net
3,887
3,876
Goodwill and other intangibles, net
24,704
24,972
Noncurrent deferred income tax assets
1,193
1,098
Other noncurrent assets
3,169
3,143
Total assets
$
46,291
$
47,844
Liabilities and shareholders' equity
Current liabilities
$
6,315
$
7,794
Long-term debt, excluding current maturities
14,224
14,859
Income taxes
403
402
Other noncurrent liabilities
2,370
2,369
Shareholders' equity
22,979
22,420
Total liabilities and shareholders' equity
$
46,291
$
47,844
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months
2026
2025
Operating activities
Net earnings
$
745
$
654
Depreciation
120
105
Amortization of intangible assets
180
167
Changes in operating assets, liabilities, income taxes payable and other, net
(464)
(676)
Net cash provided by operating activities
$
581
$
250
Investing activities
Acquisitions, net of cash acquired
$
(22)
$
(4,749)
Proceeds/(Purchases) of short-term investments
—
750
Purchases of property, plant and equipment
(166)
(123)
Other investing, net
3
(14)
Net cash used in investing activities
$
(185)
$
(4,136)
Financing activities
Borrowings (payments) of debt, net
$
(1,000)
$
2,979
Payments of dividends
(337)
(320)
Other financing, net
